Contribution of displaced Ukrainians to addressing labour shortages in Latvia

As part of a broader international debate on the contribution of labour migrants to national economies, especially with the rapidly growing interest in Ukrainian refugee labour, this article examines to what extent displaced Ukrainians have provided the skills that are in shortage in Latvia. This is achieved through two research methods. First, the article analyses the statistics on the number of registered vacancies and their actual fulfilment in general and those offered to displaced Ukrainians. This allows for an analysis of the demand of displaced Ukrainians in certain sectors and occupations, contrasting them with overall labour demand in the Latvian economy. Second, an assessment of employers’ needs and expectations of the migrant and the displaced Ukrainian workforce and its supply is based on 14 in-depth interviews with employers. The data show that although the displaced Ukrainians have supplied labour to sectors experiencing shortages, the employment participation of this migrant group is lower than initially expected. The main reason is the skill sets offered by the displaced Ukrainian labour force that partly mismatch to the Latvian labour market needs. The most important obstacles highlighted by Latvian companies to offer jobs to Ukrainians are their lack of Latvian language skills and knowledge of local context.